IGOI WACC - Weighted Average Cost of Capital
The WACC of iGO Inc (IGOI) is 8.5%.
| Range | Selected | |
| Cost of equity | 10.3% - 13.6% | 11.95% |
| Tax rate | 0.5% - 11.7% | 6.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 9.2% | 8.5% |
| Category | Low | High |
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1.68 | 1.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 13.6% |
| Tax rate | 0.5% | 11.7% |
| Debt/Equity ratio | 0.92 | 0.92 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 9.2% |
| Selected WACC | 8.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| IGOI | iGO Inc | 0.92 | 0.89 | 0.46 |
| DDD | 3D Systems Corp | 0.96 | 2.14 | 1.09 |
| IINX | Ionix Technology Inc | 78.16 | 179.7 | 2.28 |
| NNDM | Nano Dimension Ltd | 0.04 | 1.15 | 1.11 |
| OSS | One Stop Systems Inc | 0.02 | 1.83 | 1.79 |
| OTIVF | On Track Innovations Ltd | 1.95 | 0.81 | 0.28 |
| PSTG | Pure Storage Inc | 0.01 | 2.11 | 2.1 |
| SMCI | Super Micro Computer Inc | 0.08 | 3.13 | 2.9 |
| SONM | Sonim Technologies Inc | 0.86 | 0.46 | 0.25 |
| Low | High | |
| Unlevered beta | 1.1 | 1.66 |
| Relevered beta | 2.01 | 2.19 |
| Adjusted relevered beta | 1.68 | 1.8 |
IGOI's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for IGOI:
cost_of_equity (11.95%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.68) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.